Major Labour U-turn with MPs set to vote on scrapping Winter Fuel Payment for millions

5 September 2024, 12:23 | Updated: 9 September 2024, 09:17

The Conservatives have forced a major Labour U-turn over plans to scrap Winter Fuel Payments to millions of pensioners.

Labour had previously said they would not hold a vote on the decision to cut Winter Fuel Payments - a controversial policy that has faced considerable backlash from Conservatives and Labour MPs alike.

The proposed plans from Labour would see 10 million people stripped of their fuel allowance this winter.

However, Thursday's announcement appeared to show a dramatic change of heart, with MPs now set to return to the House of Commons to hold a vote on the plans.

Speaking with LBC on the subject of means-tested payments on Thursday, Deputy Prime Minister Angela Rayner reiterated Labour's comments blaming a "significant black hole" left by the previous government for the proposed cuts.

It's a move that has been welcomed by shadow work and pensions secretary Mel Stride.

Lucy Powell, the leader of the Commons, said the proposed changes to Winter Fuel Payments will now be debated on September 10.

It followed increasing pressure on Keir Starmer over the stripping the winter fuel allowance, which would use financial testing to allocate the allowance to pensioners, instead of a blanket allowance being handed out to all.

The move follows ten Labour MPs joining a revolt on stripping of the allowance.

Speaking following the announcement, Shadow Work and Pensions Secretary Mel Stride said: “We welcome that the Labour Government have u-turned and there will now be a vote on the Conservative motion to scrap the cruel cut to Winter Fuel Payments.

Read more: Royal Mail set to axe part of Saturday service under string of new reforms

Read more: Domestic abusers could be released on the streets next week, former Justice Secretary Alex Chalk tells LBC

“Labour thinks it is right to give their union paymasters an inflation-busting pay rise over protecting vulnerable pensioners, just as bills are going up. This tells you everything you need to know about the Government’s values.

“Labour still wants to stop this vital support for the most vulnerable pensioners, but we would urge all MPs to do the right thing and back this Conservative motion to stop this punishing cut.”

About five out of every six pensioners living below the “poverty line” could be at risk of being stripped of their winter fuel payments, according to a former pensions minister.

Watch Again: James O'Brien is joined by Deputy PM Angela Rayner | 05/09/24

Sir Steve Webb, who is now a partner at pension consultants LCP (Lane Clark & Peacock), said analysis suggests that about 1.6 million older people who are below what is commonly regarded as the poverty line do not receive pension credit.

Chancellor Rachel Reeves and Prime Minister Sir Keir Starmer have faced criticism from opponents, campaigners and some of their own MPs over the decision to means test winter fuel payments, worth up to £300.

Reeves has defended her decision to strip winter fuel payments from millions of pensioners in recent weeks, as energy bosses were called in for talks on helping the most vulnerable households ahead of winter.

Only those receiving pension credit or other means-tested benefits will be eligible for the payment in England and Wales as a result of the Government’s decision, which ministers have said is needed to help fill a £22 billion black hole in the public finances.

Angela Rayner once again rejected demands on Thursday during her morning interviews to rethink the plans, noting the government had an obligation to balance the books.

During Prime Minister's Questions on Wednesday, he suggested Labour had chosen train drivers over pensioners by agreeing a pay deal with unions to end strikes while proposing the winter fuel cut.